After denouncing the actions of Deutsche Bank, Eric Ben-Artzi has quit jackpot which he was entitled. An atypical whistleblower!
O n will not suspect him of loving money by -Dessus all. Eric Ben-Artzi, former analyst at Deutsche Bank in 2012 which denounced fraudulent accounting practices of its management to the US regulator, has just refused its premium offered by the Securities and Exchange Commission (SEC), the US stock Constable to which he was entitled. Be not less than $ 8.25 million (€ 7 million), still …
At the height of the subprime crisis, which began in 2008, the first German bank had indeed minimized significant losses on certain financial products. Based on the information provided by Eric Ben-Artzi, then the SEC had launched an investigation which resulted last year, a fine of $ 55 million. The philosophy in the United States is to reward whistleblowers that allow authorities fight against fraud , Eric Ben-Artzi was entitled to the jackpot: 15% of the fine! He refused.
He wants his bonus be paid out to shareholders of Deutsche Bank, which he considers “the first victims” of this case
in a letter published Friday by the British business daily “Financial Times”, the virtuous former employee explains the reasons for this surprising refusal. “I do not want to participate in the theft of the people I’ve been tasked to protect,” wrote the young man, who since 2011 regularly participates in conferences on the role of whistleblowers. “I refuse to take my hand, he said in his letter. Leaders (Note: Deutsche Bank) went to retire with millions of dollars. It is disappointing that the SEC has fined the shareholders rather than responsible leaders. “And the financial analyst, who certainly has no language in his pocket, opens another front in denouncing the” elevator referral “(” revolving doors “in English) that exist in the United States between banks and regulatory authorities. He accuses the SEC’s collusion with some banks. Leaders of Deutsche Bank have worked according to him also, before or after the period of the offending activities, the SEC, which would explain the indulgence which the US stock market watchdog have demonstrated against bank officials German. In fact, Eric Ben-Artzi requested that its share of the premium is paid out to shareholders of Deutsche Bank, which he considers “the first victims” of this case. The bank has indeed been launched from a massive restructuring plan. It thus plans to close by 2020 some 200 subsidiaries in Germany and remove 9000 positions worldwide.
“The fact that this analyst refused the money seems like a good thing, Lebègue said Daniel, president of the french office of Transparency International, specializing in the fight against corruption. We are against this bonus system developed by the Anglo-Saxons, and especially the Americans, because it can lead to abuses. We argue instead for a personalized support for whistleblowers. “
It is true that they often pay dearly for the price of their virtue. Dismissed by Deutsche Bank, Eric Ben-Artzi immediately found black-listed on Wall Street. “It’s a small environment,” explained in 2014 at a conference at Auburn University (Alabama) who is gone again … his professional life in the Middle East.
Must pay whistleblowers?
the question of a reward to citizens denouncing practices contrary to the public interest remains valid. In the United States, where in the Wild West bounty hunters indulged criminals sheriffs (the famous “bounty hunters” in English), the award given to tax matters whistleblowers back to the Lincoln Law 1863 (the “False Claims Act”). Today, granting whistleblowers from 10 to 30% of the amounts recovered, this legislation is very effective since 2013 it allowed the IRS to recover € 2.6 billion ($ 2.9 billion) . In 2011, the “Dodd-Frank Act” extended this practice to alerts issued outside the United States. But this device has its limitations. In Korea, the creation of an award has attracted hunters vocations premiums unscrupulous …
Europe, it has always rejected the principle of a financial incentive. Its recommendations are still inspired by the British example and its “Public Interest Disclosure Act” adopted in 1998. It provides protection from the use of the accuser, sanctions any attempt of retaliation and indemnify legal costs and moral damage. In France, Finance Minister Michel Sapin, wants to change the practice. Following the scandal of Panama Papers, he said in April 2016 in favor of a payment of informers in tax fraud.
Transparency International wants the creation of a foundation to d help and support informants and funded by a levy on amounts recovered.
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